London equities fall as power shares dip; U.S. debt ceiling vote eyed

By Johann M Cherian and Shashwat Chauhan

(Reuters) – Britain’s commodity-heavy inventory indexes slid on Wednesday as weak China financial knowledge drove commodity costs decrease, whereas sentiment remained fragile forward of a vital vote on the U.S. debt ceiling difficulty.

The exporter-heavy FTSE 100 logged a greater than 5% drop in Might, its worst Might efficiency since 2015, as worldwide elements just like the U.S. debt deal uncertainty and worries of stalling world progress weighed on the minds of buyers.

The domestically centered FTSE 250 additionally clocked a 3.6% month-to-month decline.

For the day, the FTSE 100 dropped 1%, logging a recent two-month low as heavyweight power companies fell 2.7% after weak China financial knowledge clouded the outlook for uncooked supplies. [O/R]

China-focused Prudential fell 6.1% after the life insurance coverage agency stated its finance chief would go away the corporate following an investigation right into a latest hiring on the firm confirmed his conduct had fallen in need of requirements.

The invoice to raise the U.S. authorities’s debt ceiling is because of vote on Wednesday within the U.S. Home of Representatives.

“Till it (U.S. debt ceiling invoice) has been verified by the Home of Representatives, there appears to be a little bit of concern,” stated Christopher Peters, buying and selling flooring supervisor at Accendo Markets.

The mid-cap FTSE 250 shed 0.5%, weighed by a 6.2% drop in Drax Group after power regulator Ofgem stated it was investigating if the facility agency was in breach of annual profiling reporting necessities.

In a vivid spot, B&M European Retail SA surged 8.0% after the low cost retailer forecast increased annual core revenue.

Entain shed 4.0% after the Ladbrokes-owner stated it was prone to get slapped with a monetary penalty as a part of a probe.

Ocado Group slid 5.8% as the web grocery store and know-how enterprise is anticipated to be demoted to the FTSE 250 midcap index after Wednesday’s shut.


(Reporting by Johann M Cherian and Shashwat Chauhan in Bengaluru; Modifying by Sonia Cheema, Shailesh Kuber and Pooja Desai)

Originally posted 2023-05-31 16:40:38.